Overview
- S&P Global’s flash PMI showed U.S. business activity accelerating to a composite reading of about 58.4 on Wednesday, the strongest in over five years and a signal of rising input costs.
- The U.S. 10‑year Treasury yield climbed to roughly 5.11–5.145%, its highest level since 2007, in a rapid bond selloff that traders say reflects hotter growth and inflation risks.
- Brent crude jumped back above $100 a barrel after reports of a vessel struck in the Strait of Hormuz and renewed diplomatic friction with Iran, adding to inflation worries that lift yields.
- Market pricing and Fed comments raised the chance of an October rate increase into the mid‑60s to mid‑70s percent range, and stocks pulled back with the S&P 500, Nasdaq and Dow all posting losses.
- Crypto markets weakened as higher yields removed a key support for non‑yielding assets: Bitcoin slid to about $83k–$84k and CoinGlass reported roughly $135.8 million of crypto positions liquidated in an hour, highlighting tighter liquidity and the risk to leveraged traders.